Earnings roundup: Sears, Kohl’s
New York--Sears Holdings Corp. and Kohl’s Corp. posted weak same-store sales results for the fourth quarter or full year, earnings released Thursday by the retailers show.
Highlights from both companies’ fourth quarter and full year results are below.
Sears Holdings Corp.
Same-store sales for Sears stores in the United States increased less than 1 percent year-over-year in the fourth quarter while comp sales at Kmart declined 4 percent. Same-store sales for Sears Canada also were down 4 percent. Online sales grew 25 percent year-over-year.
Total fourth quarter sales for Sears Holdings Corp. reached $12.26 billion in the fourth quarter compared to $12.48 billion in the prior-year period. The company’s net loss shrunk from $2.40 billion to $617 million.
For the fiscal year, same-store sales declined 1 percent for Sears Domestic, 4 percent for Kmart and 6 percent for Sears Canada. Online sales were up 17 percent.
Total sales were $38.85 billion, down from $41.57 billion last year. The company’s net loss dropped from $3.15 billion to $1.05 billion.
“Sears Holdings made progress in 2012 improving the profitability of our business, but we know there’s more work to be done in 2013,” said Edward S. Lampert, Sears Holdings’ chairman and CEO. “Our focus continues to be on our core customers, our members, and finding ways to provide them value and convenience through integrated retail and our Shop Your Way Membership platform. We have invested significantly in our online e-commerce platforms, our Membership rewards program and the technology needed to support these initiatives.”
Same-store sales increased 2 percent year-over-year in the fourth quarter for Kohl’s Corp. with total sales climbing 5 percent from $6.02 billion to $6.34 billion. Net income for the quarter fell from $455 million to $378 million.
For the fiscal year, same-store sales were essentially flat while total sales were up 3 percent from $18.80 billion to $19.28 billion. Net income shrunk from $1.2 billion to $1.0 billion.
“Sales for the fourth quarter developed very late and, as a result, came at a cost to profitability. We were, however, able to end the quarter with levels of inventory appropriate for a strong transition to spring. Our associates across the country did an excellent job in managing expenses throughout the year,” Kohl’s Chairman, President and CEO Kevin Mansell.
Kohl’s ended the year with 1,146 stores, up from 1,127 stores at the same time last year. The company opened 21 stores, including one relocated store, closed one store and completed 50 remodels.
The company said it anticipates same-store sales to increase 0 to 2 percent this year.